I would like to take this opportunity to wish you and your family a safe, healthy and prosperous 2021. Though 2020 was a challenging year due to the pandemic, we are very optimistic that we have turned the corner and 2021 will bring some normalcy back to the world. That being said, with regards to Serengeti we anticipate 2021 to be a watershed year for your Company that certainly has the potential for significant shareholder value accretion.
As you are aware, we announced a merger with Sun Metals Mining Corp. November 30th, 2020. Against the backdrop of a resurgent copper market, this transaction consolidates the ownership of a robust copper-gold portfolio, with near-term potential development synergy at Kwanika-Stardust and several high priority exploration targets. I believe the corporate combination creates an exciting, diversified copper-gold developer with a large pipeline of projects, in one of Canada’s most prolific porphyry mining camps. The merger brings together exploration, development and operational synergies at multiple projects, along with ongoing resource expansion opportunities and new discovery potential. All of this provides multiple opportunities to generate value for our shareholders.
In 2020, our focus at the Kwanika project returned to exploration. Results from three of the nine drill holes have been released to date and we anticipate the balance from the 4,350m program will be released shortly. The significance of these results can’t be understated in terms of their positive impact on the Central Zone at Kwanika. K-198, an infill hole, besides confirming a very long mineralized intercept, continues to demonstrate the presence of discrete higher-grade intervals that may be amenable to more selective mining within the overall underground resource shape. Furthermore, it appears that the bounding Pinchi fault lies further west than previously modelled, which may allow us to bring existing resources back into a potential mine plan. K-197 opens up the Central Zone to the south and K196 demonstrates that a deep copper-gold system occurs some 500 meters to the north of the Central Zone associated with a strong IP geophysical signature. Both areas warrant additional drilling to continue to firm up resource expansion opportunities. The results pending for the balance of the Kwanika drilling include holes on the Central Zone south perimeter and a hole drilled along the western boundary of the South Zone, where prior drilling has returned better than deposit-average grades.
The merger between Sun Metals Mining Corp and Serengeti Resources is anticipated to be completed in early March, a combination that we believe will create a premier Cu-Au developer in Central BC – stay tuned for the unveiling of the merged company’s new name. The benefits of the merger will be multi-tiered:
- Consolidation of data-rich projects hosting defined resources and vast land packages in a well-endowed porphyry district, creating a premier, multi-asset copper-gold developer
- An exciting pipeline of projects ranging from advanced-development through high-potential exploration
- Opportunity to focus on high-grade mineralization across the portfolio to optimize development and maximize value
- Strong synergies at the contiguous Stardust and Kwanika projects allowing for a compelling development strategy
- Immediate market catalyst by incorporating Stardust’s 421 zone into a new resource estimate, potential for resource expansion at Lorraine and initial drilling atEast Niv
- Led by Mark O’Dea, accomplished management team possesses extensive district expertise and a track record of reimagining data-rich projects to deliver significant value to shareholders
- An enhanced capital markets profile, positioning the company to benefit from the strengthening copper and gold markets
One of our most exciting and potential game changing events for Serengeti this year will the initial drill program on our fully permitted East Niv project. Last year’s field work identified a three and half sq.km., multi-parameter, porphyry copper-gold target here that we believe demonstrates district scale potential. The property is located in an under-explored region of the eastern Stikine Terrane, approximately 40km south-southwest of the Kemess mine complex. As an exploration geologist, this is one of the best large-scale projects I have worked on in my career. The potential to add very significantly to shareholder value with a discovery hole here will be tested this coming summer.
You can follow our progress on our website at www.serengetiresources.com or subscribe to our feeds on Twitter at @SIResources or LinkedIn for up to date news. As always, we welcome your calls and emails.
On behalf of the entire Serengeti team, I would like to thank you for your continuing interest and support.
David W. Moore
President & CEO